How To Rent Out Your Property in Singapore As A Landlord In 2024

The current property outlook is very optimistic. Property prices are rising really really fast and the rental market has been going up non-stop. It would not be surprising if you decide to rent out your property as it is a substantial amount as a passive income if you have any spare rooms or spare properties (!!). With this income, you would be able to either pay off your home installments (for those who have an existing loan) or use it for your monthly expenses.

If you are thinking of becoming a landlord and renting your property in Singapore, you may not know that there are many hidden expenses incurred during the renting process that will take a chunk out of your rental income.

In this article, we will look at the costs associated with renting out your property in Singapore at each stage and you can follow through with this guide to calculate your estimated expenses before you decide if it is worth it to rent out your property in Singapore.

Property Agent Fees

Most people engage a property agent to find tenants and handle the paperwork for the rental of their property. Upon successful engagement, landlords would need to pay a commission to them for the deal done. The commission is usually pretty standard across agents and is as below.

Typical Commission

1 year lease = 0.5 month rent

2 year lease = 1 month rent

You may choose to skip this if you prefer to DIY your own deal. Recently many people are listing their property for rent on Facebook ads and Carousell to avoid paying for the property agent fees.

Renovations and Furnishings

For room rentals, usually, the basic requirements required by tenants are a bed, fan, aircon, wardrobe, and table. Some tenants may also make additional requirements, and it is up to the landlord to decide if they want to furnish the room based on tenant’s request or to find another tenant.

For whole-unit rentals, you may need to furnish the unit suitable for basic living (though many landlords simply reuse their old furniture). Some tenants may also prefer empty units as they would want to use their own furniture instead.

Sometimes, better renovations and furnishings translate to better rental prices, though you would need to weigh the costs and effort required to transform your place. Some landlords also do renovations to partition their property to create more “rooms”, such that they can rent out to more tenants.

Internet, Water, Gas and Electricity

For room rentals, landlords usually need to cover the consumables up to a certain budget. This needs to be negotiated and written in the contract and it will take up a bulk of the rental income. Most of the time, the difference between having an aircon and allowing tenants to cook makes the difference in the rental prices,

For whole unit rentals, these are usually a lot more straightforward. Tenants usually bear the full costs of these consumables.

Maintenance Fees

Whether you are renting out the room or the whole unit, this fee is usually fully borne by the landlord. The fees can range from anywhere between $70 to $1000, depending on the type of property and location. You may need to factor in this cost during your calculation of the rental amount.

Wear and Tear

Furniture and appliances will spoil or wear down after a couple of years. It could happen during the tenanted period. Landlords are responsible for ensuring that these items are working during the tenanted period. Of course, damaged items caused by tenants are usually borne by them, subject to contractual agreements.

Sometimes, this is a luck game where you may have tenants who use the furniture and appliances carefully. Other times, tenants may be more careless and the upkeep of appliances is poorly done, and it may result in frequent updates of appliances. This may take up a huge chunk of your rental income if this happens.

Property Tax

If you are renting out your rooms only, you would be qualified for owner-occupied tax with rates of up to 32%.

If you are renting out your whole unit, or the rental property is your second property, you will need to pay a non-owner occupier property tax of up to 36%.

Income Tax

All income earned from renting your property is taxable. Your rental income will be added to your total income for the year before your tax is calculated.

For the top earners, you can expect to see 24% of your rental income going to make Singapore a better place to stay in. Luckily, you will be able to get some tax deductions for rental expenses, up to 15%, and home loan interest paid for.


Property in question = studio condo

Monthly Rental Income = $2500

On a 1-year contract basis:

Expected Gross Rental Income = $30,000 ($2500 x 12)

Agent Fees = $1250

Renovations and Furnishings = – (supplied by tenant)

Internet, Water, Gas and Electricity = – (bear by tenant)

Maintenance Fees = $3,600 (assuming $300 per month)

Wear and Tear = $2,000

Property Tax = $3600 (assuming the annual value of the property is $30,000)

Income Tax = $4,600 (Assuming middle-income earners with 11.5% income tax)

You can expect to earn $14,950 after deducting all the possible expenses. This calculation is also done under the assumption that you can rent out your property for the entirety of the year. If you are unable to find suitable tenants to rent your property, the expected income will not be as high as you calculated.

Before you decide to rent out your property, always make sure that you work out your finances carefully. Being a landlord is not as simple as you thought. You may end up paying for someone to stay at your property instead!

Last Updated: 14 Jan 2024

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